Cardano Unveils Eco-Friendly Measures to Meet New EU MiCA Rules

The Cardano Foundation, in partnership with the Crypto Carbon Ratings Institute (CCRI), has published the blockchain network’s sustainability indicators to ensure compliance with the European Markets in Crypto Assets (MiCA) regulation, according to a July 2 statement.

The release comes six months ahead of the second phase of MiCA’s implementation for crypto asset providers. The initiative aims to align with MiCA’s requirements, requiring crypto asset issuers and service providers to disclose sustainability metrics. The first phase of MiCA, which targets stablecoins, came into effect on June 30, with the second phase expected to follow in six months.

To facilitate compliance, the Cardano Foundation collaborated with CCRI to collect and analyze quality data on the Cardano network. This collaboration resulted in a report that details comprehensive sustainability indicators specific to Cardano.

Cardano Indicators

According to the report, Cardano uses an energy-efficient consensus protocol that consumes much less energy than Proof-of-Work blockchains like Bitcoin.

As of May 2024, the Cardano network had consumed only 704.91 MWh, or approximately 0.192 W per transaction per second (TPS).

The report also reveals Cardano’s annualized carbon footprint and the carbon intensity of its electricity consumed, which are 250.73 tCO2e and 356 gCO2 per kWh, respectively.

These sustainability measures are in line with the draft Regulatory Technical Standards (RTS) specified by the MiCA regulation. Cardano hopes that this report will serve as a benchmark for other blockchain networks.

Frederik Gregaard, CEO of the Cardano Foundation, highlighted the growing need to address sustainability in the crypto space. He noted that the partnership with CCRI will help Cardano meet the stringent requirements of MiCA and help financial institutions integrate sustainability into their digital asset offerings.

Similarly, Dr. Ulrich Gallersdörfer, CTO and co-founder of CCRI, highlighted the importance of scientific methodologies and real-world data in measuring and managing the environmental impacts of blockchain networks.

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Liam “Akiba” Wright

Editor-in-Chief at CryptoSlate

Also known as Akiba, Liam is a journalist, editor, and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to bring about positive change on a large scale.